Sunoco LP (SUN) closed at $49.97 in the latest trading session, marking a -1.48% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.58% for the day.
The master limited partnership's stock has dropped by 0.74% in the past month, falling short of the Oils-Energy sector's gain of 3.53% and the S&P 500's gain of 3.68%.
The upcoming earnings release of Sunoco LP will be of great interest to investors. The company's upcoming EPS is projected at $1.66, signifying a 738.46% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $5.58 billion, down 2.94% from the year-ago period.
SUN's full-year Zacks Consensus Estimates are calling for earnings of $5.54 per share and revenue of $21.95 billion. These results would represent year-over-year changes of -7.67% and -3.27%, respectively.
It is also important to note the recent changes to analyst estimates for Sunoco LP. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Sunoco LP is currently a Zacks Rank #3 (Hold).
In the context of valuation, Sunoco LP is at present trading with a Forward P/E ratio of 9.16. This valuation marks a discount compared to its industry average Forward P/E of 18.05.
The Oil and Gas - Refining and Marketing - Master Limited Partnerships industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 94, finds itself in the top 39% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).
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